What is the meaning, types and causes of inflation.?
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Inflation means a sustained increase in the general price level. The main two types of inflation are. Demand-pull inflation – this occurs when the economy grows quickly and starts to 'overheat' – Aggregate demand (AD) will be increasing faster than aggregate supply (LRAS).
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Inflation means there is a sustained increase in the price level.
The main causes of inflation are either excess aggregate demand (AD) (economic growth too fast) or cost push factors (supply-side factors).
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